4. Outputs from Scottish farms

The value of outputs from Scottish farms fell from £3.03
billion in 2014 to £2.88 billion in 2015, and dropped further
to an estimated £2.87 billion in 2016. Changes in outputs
will be due to both changes in volume and in prices.

The total output of
livestock (finished and store, including coupled
support) was estimated as £1.06 billion in 2015 (37 per cent
of output; down £32 million, three per cent or four per cent
real terms) and £1.10 billion in 2016 (38 per cent of output;
up £41 million, four per cent or three per cent real
terms).

Within this the value of finished
cattle rose to £650 million in 2015 (23 per
cent of output; up £3 million, up 0.5 per cent or down one
per cent real terms) but is estimated to have fallen to £642
million in 2016 (22 per cent of output; down £8 million, one
per cent or two per cent real terms). Both years saw a fairly
steady volume, with a steady price in 2015 followed by a dip in
price in 2016. Store cattle output was estimated at £50
million in 2015 and £54 million in 2016, the increase in 2016
being due to an increase in export numbers outweighing a fall in
price.

Finished
sheep and lamb output was estimated as £173
million in 2015 (six per cent of output; down £9 million,
five per cent or seven per cent real terms) and £195 million
in 2016 (seven per cent of output; up £23 million, 13 per
cent and 13 per cent real terms). Changes are due to reductions in
numbers and prices in 2015 followed by increases in both in 2016.
Store sheep and lamb output was estimated at £13.0 million in
2015 and £14.3 million in 2016, an increase in both
years.

Output of
pigs was estimated as £85 million in 2015
(three per cent of output; down £7 million, eight per cent or
nine per cent real terms) and £89 million in 2016 (three per
cent of output; up £3 million, four per cent or three per
cent real terms). Production increased in both years, but while
prices fell in both, though more strongly in 2015.

Poultry output had been falling but recovered in
2016. It was estimated as £65 million in 2015 (two per cent
of output; down £23 million, 26 per cent or 28 per cent real
terms) and £84 million in 2016 (three per cent of output; up
£19 million, 29 per cent or 29 per cent real terms). 2015 saw
a fall in price and a large fall in broiler numbers, but numbers
increased in 2016, outweighing the further drop in price.

Amongst livestock products, the value of
milk fell sharply to £378 million in 2015
(13 per cent of output; down £76 million, 17 per cent or 18
per cent real terms) and further to an estimated £328 million
in 2016 (11 per cent of output; down £50 million, 13 per cent
or 14 per cent real terms). The average price for a litre fell from
31.5p to 24.1p between 2014 and 2015, though the volume increased
eight per cent to 1.6 billion litres. The average price fell
further in 2016 to 22.0p per litre, the lowest since 2007,
accompanied by a five per cent reduction in volume to 1.5 billion
litres.

The value of
eggs for food was estimated at £92 million
in 2015 (three per cent of output; up £10 million, 12 per
cent or 11 per cent real terms) and £83 million in 2016
(three per cent of output; down £8 million, nine per cent or
ten per cent real terms). There were increases in production in
both years with reasonably steady prices in 2015, but a 15 per cent
fall in price in 2016.

Wool accounted for £4.6 million in both 2015
and 2016, with a drop in price in 2015 followed by steady prices
and quantity in 2016.

Other livestock and livestock products includes
around £10 million for exported hatching eggs.

Cereals were valued at £334 million in 2015
(12 per cent of output; down £44 million, 12 per cent or 13
per cent real terms) and £308 million in 2016 (11 per cent of
output; down £27 million, eight per cent or nine per cent
real terms). About 60 per cent of this value comes from barley,
with barley showing a 14 per cent reduction in value in 2015, and a
further nine per cent in 2016, due to a fall in production. The
price fell in 2015 but recovered due to the weakening of the pound
in 2016. The value of wheat fell in both years, down to £104
million in 2016, but oats saw a 42 per cent increase in 2016 to
£23 million.

Amongst other crops,
potatoes were valued at £171 million in 2015
(six per cent of output; down £15 million, eight per cent or
ten per cent real terms) and an estimated £209 million in
2016 (seven per cent of output; up £38 million, 23 per cent
or 22 per cent real terms). The fall in 2015 was due to a fall in
ware prices and production, whereas in 2016 both saw increases.

Within
horticulture, vegetable production accounted for
an estimated £109 million in 2015 (four per cent of output;
down £3 million, three per cent or five per cent real terms)
and £123 million in 2016 (four per cent of output; up
£14 million, 13 per cent or 12 per cent in real terms). Fruit
production accounted for an estimated

£140 million in 2015 (five per cent of output; up
£51 million, 57 per cent or 55 per cent real terms) and
£115 million in 2016 (four per cent of output; down £25
million, 18 per cent or 18 per cent real terms). Fruit volume and
prices both did very well in 2015, and although they dropped back
in 2016, the trend is still strongly upwards.

Capital formation, which in financial terms
recognises the value of putting livestock into the breeding herd
rather than slaughter, was estimated at £180 million in 2015
(six per cent of output; down £14 million, seven per cent or
nine per cent real terms) and £181 million in 2016 (six per
cent of output; up £0.2 million, or no change in percentage
terms).

Other agricultural work accounted for £86
million in 2015 and was estimated at £84 million in 2016
(three per cent of output in both years), with income from
non-agricultural activity
[2] estimated at £246 million in 2015 (nine per cent of
output; up £2 million, up one per cent or down one per cent
real terms) and £253 million in 2016 (nine per cent of
output; up £7 million, three per cent or two per cent real
terms).